Stock Market Surges Continuously for Ninth Consecutive Day, Recovering Declines Following Tariff Increase
Rewritten Article
Stock Market Roars Back to Ninth Consecutive Win, Triumphant Since Trump's Trade War Escalation
NEW YORK - The tempo of Wall Street kept marching on Friday, notching a ninth continuous victory, a feat unseen since 2004. This rally has recovering the market's ground that had dissipated since President Trump commenced his trade war in early April.
The spurt was ignited by an upbeat report on the U.S. workforce and a resurgence of hopes for a softening of the U.S. trade confrontation with China.
The Standard and Poor's 500 ascended 1.5%. The Dow Jones industrial average climbed 1.4%, and the Nasdaq composite rose 1.5%.
The gains were widespread. About 90% of stocks and every sector in the S&P 500 inched ahead. Tech titans powered a significant portion of the progress. Microsoft escalated 2.3%, and Nvidia augmented 2.5%. However, Apple plummeted 3.7% after the tech titan predicted tariffs would cost it $900 million.
Financial corporations, including banks, also showed robust gains. JPMorgan Chase increased 2.3%, and Visa finished the day 1.5% higher.
Employers recruited 177,000 new employees in April. This indicates a slowdown in hiring compared to March, but it surpassed economists' expectations. Regrettably, the current employment numbers don't yet represent the economic impact of President Trump's tariffs on trading partners.
Many severe tariffs that initially were slated to take effect in April were delayed by three months, except those aimed at China.
"If the administration moves forward with their initial tariff plan once the three-month pause expires in July, we'll likely witness market action similar to the first week of April," said Chris Zaccarelli, chief investment officer for Northlight Asset Management.
During the initial week of April, the S&P 500 softened 9.1% as Trump declared an intensification of his trade war with additional tariffs. Since then, the market has rebounded, bolstered by tenacious corporate earnings reports, optimism for the de-escalation of trade tensions with China, and expectations that the Federal Reserve will still be able to trim rates a few times this year.
The benchmark index ascended 82.53 points to 5,686.67. The Dow surged 564.47 points to 41,317.43, while the Nasdaq added 266.99 points to 17,977.73.
The employment sector is closely monitored for signs of tension amid the trade war dispute. Strong employment has nurtured robust consumer spending and economic growth over the past few years. Economists are now concerned about the repercussions that tariffs will have on consumers and businesses, particularly the potential damage they will inflict on hiring and spending.
The economy is already manifesting strains. The U.S. economy accumulated a 0.3% annual contraction during the first quarter of the year. It was stymied by a rush in imports as businesses attempted to stockpile ahead of Trump's tariffs.
The ongoing cycle of tariffs and the inconsistency of Trump's strategy has clouded the business and household planning process. Companies have been scaling back and withdrawing financial projections due to the uncertainty over the financial implications of tariffs and their potential impact on consumer spending.
Hopes persist that Trump will rescind some of his tariffs upon completing trade accords with other nations. China has been a prime target, with tariffs pegged at 145%. Its Commerce Ministry hinted that Beijing is evaluating U.S. pitches regarding the levies.
On the earnings front, Friday was relatively subdued after a bustling week. Exxon Mobil gained 0.4%, shaking off an initial decline, following its declaration of its lowest first-quarter profit in years. Its rival, Chevron, increased 1.6% after it too revealed its smallest first-quarter profit in years.
Lower oil prices have burdened the sector. Crude oil prices in the U.S. have fallen about 17% for the year, plunging beneath $60 per barrel this week, a level that many producers can no longer profit at.
Block plummeted 20.4% after reporting a significant decline in its first-quarter profit, falling short of analysts' forecasts. The financial technology company behind Cash App attributed the results to a decline in consumer spending on leisure and discretionary items.
Yields rose in the bond market. The yield on the 10-year Treasury ascended to 4.31% from 4.22% late Thursday.
Troise and Veiga pen the Associated Press.
Further Reading
Big Tech Drives Wall Street's Closing Wins, Capping its Successful, Roller-Coaster Week
Wall Street Rises on Piling Corporate Profits and Uncertainty about Trump's Trade War
Wall Street Storms Back from Early Slumps, Imitating the Manic Swings During an Historic April
- California's economy, particularly the technology sector, played a significant role in the recent success of the stock market, as tech titans like Microsoft and Nvidia contributed to the ninth consecutive win.
- The stock market pullback in early April, triggered by President Trump's escalation of the trade war, has been evaluated closely, and economists are concerned about the potential damage that tariffs could inflict on hiring and spending in the business world.
- In the wake of the trade war dispute, investors are especially keen on monitoring the employment sector, as strong employment has been instrumental in fostering robust consumer spending and economic growth over the past few years.
- The law regarding tariffs and their financial implications for consumers and businesses has been a focus of attention, with many companies scaling back and withdrawing financial projections due to the uncertainty caused by the trade war.
- The ongoing cycle of tariffs and the inconsistency of Trump's strategy have created a cloud of uncertainty, making it challenging for both businesses and households to plan effectively for the future.
- The technology industry, a key driver of California's economy, is keeping a close eye on developments regarding the trade war with China, particularly with the Commerce Ministry of China hinting that they are evaluating U.S. pitches regarding the levies.
- The stock market, including indices like the Standard and Poor's 500, the Dow Jones industrial average, and the Nasdaq composite, has shown resilience in the face of economic challenges, rebounding from the initial slumps in April to notch a ninth consecutive victory, a feat unseen since 2004.
